According to Bloomberg, investors are gradually realizing that AI investments are currently more of a cost than a benefit. Technology stocks drove the stock market higher for most of 2024, but have recently suffered a sharp drop. Traders shifted from large technology stocks to the lagging part of the market, driven by expectations of Fed rate cuts and concerns about AI benefits. The Nasdaq 100 and S&P 500 indexes hit the threshold that triggers a sell signal for commodity trading advisors (CTAs). If the stock market continues to fall, CTAs may sell $32.9 billion in global stocks, including $7.9 billion from the US market. Even if the market rebounds, CTAs may still sell $902 million in US stocks.

#AI